Chairman and CEO of Manas release letter on future strategy
Baar, Switzerland, March 4, 2010
Manas Petroleum (OTCBB: MNAP)
Dear friends and fellow shareholders,
We have closed the transaction for the financing of the Albanian project. Although structured differently, this transaction is in general consistent with Manas' business model and strategy by farming out the majority of a project while retaining an interest between 25% and 35% carried until discovery. This business model enables Manas to reduce its financial risk and still participate in the enormous up-side potential of the various projects. In the Albanian transaction Manas begins with a significant ownership interest which could increase with time and operational success to as much as 50%. Additionally, Manas retains a strong management position within Petromanas, where Manas is filling the positions of CEO and CFO and nominated 3 of the 6 seats on the board.
What does this mean for Manas?
With the closing of the Albanian project financing, Petromanas has assumed Manas' debts and Manas now goes forward debt-free.
In addition to our equity participation in Petromanas, we propose to focus our attention on the exploration of our operated projects in Mongolia and Tajikistan while continuing to be a constructive partner in Kyrgyzstan.
By Santos entering into the 2nd Phase of the Kyrgyz project and providing funding in Tajikistan for the operational costs including the upcoming seismic campaign, Santos has confirmed their commitment to these projects.
We believe that the on-going carry from the farmed out projects and the returned cash from Petromanas to Manas for past investments in the Albanian exploration give us sufficient financial strength to follow this route.
Outlook:
In 2010, we are looking with excitement at promising seismic campaigns in Albania and in the Western license area of Tajikistan. We are planning to spud at least 2 deep wells in Kyrgyzstan, and, additionally we are preparing to spud in Albania. Each of these projects has the potential to substantially increase the value of our projects and your investment in our company.
Additionally, in the continuing effort to expose Manas to a much larger and a more resource sophisticated audience, we are continuing to take the necessary steps to become listed on the TSX Venture stock exchange and we are already filing at SEDAR.
Our commitment to acquire, develop, drill and produce oil remains as intense, and perhaps more so, than ever. We now believe that we have the foundation in place to become a great company, discovering, developing and producing oil for years to come. It is our expectation to be shortly reporting additional progress, and we continue to look forward to the on-going reporting of progress, to you, our friends and shareholders.
Heinz J. Scholz (Chairman)
Erik Herlyn (Chief Executive Officer)
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements. Forward-looking statements are projections of events, revenues, income, future economic performance or management's plans and objectives for future operations. In some cases you can identify forward-looking statements by the use of terminology such as "may", "should", "anticipates", "believes", "expects", "intends", "forecasts", "plans", "future", "strategy", or words of similar meaning. Forward-looking statements in this press release include statements about the possibility that, with time and operational success, Manas Petroleum can increase its ownership interest in Petromanas Energy to as much as 50%, that Manas Petroleum can move forward on a debt-free basis, its intent to focus on exploration of its operated projects in Mongolia and Tajikistan, that it has the financial strength to pursue its operations into the foreseeable future, its anticipation of promising seismic campaigns in Albania and Tajikistan and its plans to spud wells in Kyrgyzstan and Albania. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks that partners cannot fulfill commitments, the risk that required financing may not be available, the risks inherent in the industry, poor capital markets and other risks identified by Manas in its periodic filings on EDGAR (which can be viewed at www.sec.gov). Any of these risks could cause Manas' or its industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.
While these forward-looking statements and any assumptions upon which they are based are made in good faith and reflect current judgment regarding the direction of Manas' business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested in this press release. Except as required by applicable law, including the securities laws of the United States and Canada, Manas does not intend to update any of the forward-looking statements to conform these statements to actual results.
For further information please contact:
Manas Petroleum Corp.
Erik Herlyn
Bahnofstr. 9 P.O. Box 155
CH-6341 Baar, Switzerland
Phone: +41 44 718 1030
Fax: +41 44 718 1039
Email: info@manaspete.com
Web: www.manaspete.com